Cooley Products has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and cost drivers have been identified Click the icon to view the activity costs and drivers.) The Job Cost Record for Job #524 revealed that direct materials requisitioned for the job totaled $1,140. The Job Cost Record also showed that direct labor for this job totaled 11 hours at a wage rate of $28 per hour. Other data collected on the resources used by Job #624 included: Click the icon to viow the other data) Read the requirements Requirement 1. Calculate the activity cost allocation rate for each of the five pools listed in the table. (Round the allocation rate to the nearest cont. Abbreviations used: DL = direct labor, MH = machine hour) Activity cost allocation rate Machine setup per setup Machining per MH Polishing per cloth Quality control per test Facility level costs per DL hour Requirement 2. Calculate the total cost of Job #624 (use an ABC costing system) Job Cost Record Manufacturing JOB #624 Costs Total job cost Requirement 3. Why would ABC provide a more accurate allocation of manufacturing overhead (MOH) than a plantwide rate? The cost estimate based on ABC would provide a more accurate allocation of MOH than a plantwide rate because this cost estimate takes into account This information can be used to Requirement 4. Assume that Cooley Products used a traditional costing system rather than an ABC system. Its plantwide MOH rate would have been determined using direct labor (DL) hours as the allocation base. How much cost distortion would have occurred on this job? Begin by calculating the plantwide overhead rate. First identify the formula used to compute the plantwide overhead rate, then compute the rate. (Round the rate to the nearest whole dollar) - Plantwide overhead rate How much cost distortion would have occurred on this job? (Use parentheses or a minus sign for under-costed amounts) Job 624 Plantwide overhead allocated Less: ABC Cost distortion difference Data Table cost distortion overhead alloca Activity Machine setup Machining Polishing Quality control Facility-level costs Total manufacturing overhead (MOH) rtion difference Total estimated MOH costs related to activity 88.000 1,425,000 96,000 $ 150,000 $ 120,000 $ 1,879,000 Total estimated amount of allocation base activity 2,200 setups 7,500 machine hours 8.000 polishing cloths 2,000 tests run 60.000 DL hours Print Done --- wide overhead rate i Data Table - have occurred on this amounts.) Job #624 2 machine setups required 4 machine hours 2 polishing cloths 4 quality control tests run Print Done